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< News and Events

Wipro and IAMAI Report Predicts MVAS Market in India Set to Grow to US $9.5 Billion in 2015 from an Estimated US $4.9 Billion in 2012

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Wipro and IAMAI Report Predicts MVAS Market in India Set to Grow to US $9.5 Billion in 2015 from an Estimated US $4.9 Billion in 2012

 

Bangalore, India - March 25, 2013

Wipro Technologies, the Global Information Technology, Consulting and Outsourcing business of Wipro Limited (NYSE:WIT), and The Internet and Mobile Association of India (IAMAI), in a joint research report titled "Future Thought of Business (FTOB): MVAS" predicts that the Indian MVAS market will grow at a CAGR of 25% between 2012 and 2015 to reach US $9.5 billion in 2015, from an estimated US $4.9 billion in 2012.

Wipro and IAMAI conducted an in-depth evaluation of over 450 consumers and providers of MVAS in India to identify the major drivers and barriers of the Indian MVAS market and provide insights that will help to grow this market. The research focused on the mEducation, mEntertainment, mFinance and mHealth application areas and found that there is pent up market demand from consumers for sophisticated mobile services in India that have the potential to improve the overall quality of living.

"Basic informational mobile services are set to decline in India," said Ayan Mukerji, Senior Vice President, Global Head - Media and Telecom, Wipro Technologies. "We have found that India's consumers will increasingly purchase enriched and transformational education, health, finance and entertainment services. An expected MVAS revolution in India is being made possible by the dramatic growth in mobile device penetration and mobile network capacity and this market offers abundant opportunities for growth to all industry participants."

Opportunities for different participants in the Indian MVAS market include:

  • Domestic mobile operators could focus on providing better network and connectivity
  • Global operators could increase their base by testing new VAS offerings in the Indian market
  • Content and VAS technology could focus on the consumer experience and developing personalized content
  • Original equipment manufacturers could innovate with lost cost smartphones and mobile devices to drive penetration

To realize the market's full potential, the industry requires a collaborative effort across mobile network operators, telecom equipment vendors and mobile service content providers. "So far, this market has been hampered by a lack of services innovation," said Dr. Subho Ray, President, IAMAI. "By forging mutually agreeable partnerships, we can improve customization and localization of content and create services with a compelling consumer value proposition. The Indian MVAS market offers tremendous potential to all industry participants and those companies that can offer innovative services will stand to benefit the most" Dr. Ray added.

The research findings reveal that mEntertainment is the largest contributor to operator MVAS revenues and provides key opportunities in localized vernacular content, on-demand music and video content and live TV shows and events. On the other hand, mEducation can play a key role in expanding the reach and quality of education in India, through Interactive English Language Learning Services, Competitive Examination Preparation Solutions, Tutor-on-call and Vocational training. mHealth has the potential to improve healthcare access and affordability in India especially through Remote Diagnostics, Chronic Disease Management and Maternal Care. Mobile phones will also play a key role in extending financial services to the 40% of India's population who are unbanked. mFinance through Mobile Wallet Services, Mobile Remittance Services and Business Correspondence Model Based Services will contribute to MVAS revenues.

The report also highlights areas of concern that the industry could collectively address:

  • Value Perception. Even though 96% of the survey respondents accessed the internet on mobile devices, only 56% had subscribed to some form of paid MVAS
  • Service Complexity. Complexity was consistently rated as a key barrier to service adoption. For instance, 64% of participants believed that advanced mobile health services would to be too complex to use.
  • User Experience. Users expressed concern about the unique aspects of the mobile experience that could compromise usability. For instance, 56% of participants were concerned about the screen size of mobile devices.

The complete research report can be found at:
[/documents/beyond_the_tip_of_the_iceberg.pdf]

About Wipro Technologies

Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company, that delivers solutions to enable its clients do business better. Wipro Technologies delivers winning business outcomes through its deep industry experience and a 360 degree view of "Business through Technology" – helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner's approach to delivering innovation and an organization wide commitment to sustainability, Wipro Technologies has over 140,000 employees and clients across 54 countries. For more information, please visit www.wipro.com.

About IAMAI:

The Internet and Mobile Association of India [IAMAI] is a young and vibrant industry association with ambitions of representing the entire gamut of digital businesses in India. It was established in 2004 by the leading online publishers, but in the last eight years has come to effectively address the challenges facing the digital and online industry including mobile content and services, online publishing, mobile advertising, online advertising, ecommerce and mobile and digital payments among others.

Eight years after its establishment, the association is still the only professional industry body representing the online and mobile VAS industry in India. The association is registered under the Societies Act 1896 and is regulated by the Charity Commissioner of Maharashtra. With a membership of 130 plus Indian and MNC companies, offices in Delhi and Mumbai and a permanent and professional staff, the association is well placed to work towards charting a growth path for the digital industry in India. For more information, please visit http://iamai.in/

Media Contacts:

The Internet and Mobile Association of India
Nilotpal Chakravarti 
+91- 9810672906
nilotpal@iamai.i
n

Forward-looking and Cautionary Statements

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which we make strategic investments, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property, and general economic conditions affecting our business and industry. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.

 

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